On Tuesday the price of the oil futures fell amid strengthening in the USD. The price of crude oil Brent fell to $65.02 per barrel. 5 days are left before the OPEC meeting on 5 June. It is already known that there is no plan to reduce the quotes for oil production at this meeting. In Saudi Arabia export of oil is increasing. There is the increase in supply of oil from both Iran and Iraq. In addition, during the summer period the price of oil always goes down. Keep in mind also that closure of the drilling rigs in the USA has slowed down in the past few weeks.
Support and resistance
Technically the price is still between the levels of 66.70 (ЕМА144) and 62.80 (Fibonacci 3.6%). Indicators OsMA and Stochastic are in the sell zone. On the daily chart the price is below the moving average lines of ЕМА200 (71.10) and ЕМА144 (66.70) moving towards Fibonacci 23.6% (62.80). On the four-hour chart the price chart is also in the support zone of the upward correction to 64.80 (ЕМА144) and 64.00 (ЕМА200). If these levels are broken down, the decline in price will accelerate. The targets of this movement are 55.00 and 53.00.
Support levels: 66.70, 67.50, 69.55 and 71.10
Resistance levels: 64.00 and 62.80
It makes sense to open short positions at the current price and pending orders Sell Limit at the levels of 66.70 and 67.50. Targets of the sell orders are 64.10, 62.80, 60.00, 58.50, 55.00 and 53.00. Protective orders are at different levels for different strategies (for short positions: 65.50 and 65.70, and for long positions: 71.30 and 71.50).
Alternative scenario: the price can go to 71.10 (ЕМА200) and 72.70 (Fibonacci 38.2%).